November 2021

Assessment – Faceless assessment – Variation in income to assessee’s prejudice – Personal hearing not given before passing assessment order and consequential notices though requested – Assessment order and subsequent notices of demand and penalty set aside

K. B. Bhujle
Advocate

10 Satia Industries Limited vs. NFAC [2021] 437 ITR 126 (Del) Date of order: 31st May, 2021 Ss. 144B(7)(vii), 156 and 270A of ITA, 1961

Assessment – Faceless assessment – Variation in income to assessee’s prejudice – Personal hearing not given before passing assessment order and consequential notices though requested – Assessment order and subsequent notices of demand and penalty set aside


The assessee filed a writ petition challenging the assessment order and the consequential notice, issued u/s 156, towards tax demand and u/s 270A for initiation of penalty proceedings on the ground that no personal hearing was granted despite a request being made.

The High Court set aside the assessment order and the consequential notices issued u/s 156 towards tax demand and u/s 270A for initiation of penalty proceedings and gave liberty to the Department to proceed from the stage of issuing a notice-cum-draft assessment order with directions to afford an opportunity of hearing to the assessee.

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